Blackmagic Raises Price of Many Items

jonpais

jonpais

Well-known member
https://www.slashcam.com/news/single...ome-17374.html

Grant Petty announced price increases on many of Blackmagic Design’s products, saying in a press release:

“Due to inflation we have had to raise the price of some products today. Most price rises are quite small, but a few higher end products have risen more. It's a bit upsetting for us to have to raise prices as we have worked hard over the past year to keep prices stable. However, the good news is we have been able to reduce the price of a few products as well.

Overall we are hoping that the price increases for materials and electronic components might reverse in the future. Generally when prices rise, it's due to availability issues and often suppliers increase manufacturing capacity in response. So what this means is it could cause a glut of electronic components in the future. If that happens, we will be able to go back to our normal culture of reducing prices from time to time. We will keep an eye on our suppliers and pass on savings when we can.”


For the 30th June 2021 at the end of the year, Blackmagic's sales almost doubled compared to 2019 to $576 million, and profits increased tenfold to $113 million. This is typical of many companies since the pandemic, which have recorded obscene profits while exploiting customers. Sales of the latest version of DaVinci Resolve alone increased by 1000 percent compared to the last version - and it was still in beta phase! Electronics retailers are among those most likely to benefit from inflation, many of whom reported in surveys that they had increased prices to more than offset costs (using inflation as a pretext to exploit customers). Meanwhile, the average gap between CEO and median worker pay jumped to 670 to 1, up from 604 to 1 in 2020. Grant Petty occupies 101st place of the Financial Review Rich List, with an estimated fortune of well over a billion dollars.
 
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jonpais said:
[obscene profits while exploiting customers.
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Hmm, is Mr. Petty holding a gun to your head? If so, call the police and report a mugging. Otherwise, why don't you take your business elsewhere if you think you can get a better deal someplace else. I don't have too many of their products but I have always been really impressed by their low prices. Heck, I bought the Studio version of Resolve back when it was $1000. It was a hell of a deal back then, and still is today. Their acquisition of DaVinci and practically giving the software away for free revolutionized the industry. If it wasn't for Blackmagic none of us individuals could even be shooting RAW or LOG today because there'd be no way to process it. If they want to raise prices, for whatever reason, that is between them and their customers. You have no standing. But if you want to send them a message, then buy something else instead. Are you really this simple, or just trolling again? Okay, I bit. You wasted 5 minutes of my time.

BTW, I see you're still copying and pasting text from other sources as if you wrote it yourself. The pattern continues. You're a stand-up guy.
 
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If they want to raise prices, for whatever reason, that is between them and their customers.
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Funny, I don't recall any of us being consulted about it first!

Doug Jensen said:
If it wasn't for Blackmagic none of us individuals could even be shooting RAW or LOG today because there'd be no way to process it.
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The reason I know that statement wasn't copy/pasted is because it is simply an outlandish fabrication.

You have no standing.
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Whatever you say, buddy. Blackmagic Design's profits have been soaring, Grant Petty never tires of giving interviews with financial magazines that gush over how wealthy he is and the electronics industry is just one of many that have increased the price of their goods beyond the actual costs of inflation.
 
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It's just business. It's fine to say that they're being dishonest about the reason they're increasing prices. But they're not exploiting you. It doesn't shock me that Petty has gotten rich from building a successful camera company. I agree that we might be able to influence low pay for employees by causing a stink, as with influencing tax policies that favor the rich.
 
ahalpert said:
It's just business. It's fine to say that they're being dishonest about the reason they're increasing prices. But they're not exploiting you. It doesn't shock me that Petty has gotten rich from building a successful camera company. I agree that we might be able to influence low pay for employees by causing a stink, as with influencing tax policies that favor the rich.
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Blackmagic Design produces inexpensive, high quality cameras and I didn't feel that paying $1,300.00 USD for the 4K UltraStudio Mini HDR or $300.00 for the Speed Editor + DaVinci Resolve Studio was extortionate. But there is little question in my mind that all of these industries recording record profits during the pandemic and CEOs reaping enormous salaries while workers are underpaid is exploitation. And yeah, surveys have shown that many of these industries are using inflation as an excuse to increase prices over and above the actual costs they incur.
 
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Whilst BM is showing good profitability there are manufacturing and shipping pressures affecting them and every other manufacturer in Australia. BM's items are manufactured in Singapore, Indonesia, and China. Australia is 100% an island. Everything we import and export has got to move by sea or air. A massive amount of our goods are imported. Australia with a population the size of Mexico city doesn't have a massive manufacturing base.

My wife runs her own accountancy business and has many clients in the import/export business. Many of these have seen the cost of container hire from Asia go from around $1200 to $10000. One doesn't have to be an economic guru to realize that increases in shipping costs on that scale are dramatically going to inncrease the cost of the goods shipped in those containers. The slow down on the supply front is also exacerbating the problem as importers are having to pay for extended storage times at the ports of export due to shipping delays. It isn't only BM down here raising prices. If you bought a new car in Australia two years ago you can now sell it for more than you paid for it. The waiting list for new cars, all imported as we don't make cars here anymore has in spite of massive price increases in new vehicles has blown out so badly that unless you are prepared to wait months for delivery you look for a late model used car.

As much as I don't like to see increases in our kit costs I don't begrudge Petty his profitability on a well-run business. A business that has opened up as DJ says a world of opportunity and access to equipment and software for the small operator that was beyond our wildest dreams just a few years ago.

Just a quick view of what is causing price increases not just for BM but for many businesses around the globe. Just look at those ships blocking Shanghai.

Chris Young

https://www.9news.com.au/national/s...-delayed/bf43d0f8-7fd2-446d-a615-38e24c0b48c8

https://economictimes.indiatimes.co...e-covid-days-in-2023/articleshow/92170949.cms
 
Well said Chris, as usual. And DJ. BM have produced a superb piece of software for free. And the studio version costs far less than what Adobe charge for their clunky NLE, which does only a fraction of what Resolve does. In a world of wildly escalating costs, just what do you expect jonpais? I'd much rather see BM raise prices slightly than have them go out of business. There's no way I could do the sort of grading my clients expect in FCPX or Premiere. And the alternative high end grading software is not only less capable, it's a hell of a lot more expensive. Good on yer, Grant!
 
The nerve of Mr. Petty! He raised the price of the Ursa 12K nearly $400 bucks! :furious3:Of course, this follows an earlier price cut of $4,000. :engel017: All right by me.
 
Tom Roper said:
The nerve of Mr. Petty! He raised the price of the Ursa 12K nearly $400 bucks! :furious3:Of course, this follows an earlier price cut of $4,000. :engel017: All right by me.
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How dare he! Does he take us for stooges? On second thoughts? I think your point is well made. :)

Chris Young
 
jonpais I think your major flaw as a thinker is that you most likely weren't brought up in a country where many of its citizens have been systematically taught to accept rabid capitalism and profiteering from the time they went to grade school -- shame on you! (BTW I think Mr Petty's pricing policies have been pretty fair and in their own way BM has helped democratize independent filmmaking by offering superior tech at a reasonable price to creators with a wide range of budgets)
 
The mistake people make is buying into the company's marketing narrative. BM like all up and coming companies are looking to gain market share by offering features at a lower price. As they become more established this discount will diminish. I don't think the price increases are out of line.
 
jonpais said:
.... For the 30th June 2021 at the end of the year, Blackmagic's sales almost doubled compared to 2019 to $576 million, and profits increased tenfold to $113 million. This is typical of many companies since the pandemic, which have recorded obscene profits while exploiting customers.
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Since Blackmagic Design is privately held, we can't see the full financial statements to get a true picture of it's financial condition.But let's look at what was published;

"Blackmagic's sales almost doubled compared to 2019 to $576 million". So that is doubling over 2 years or an increase of 50% per year. That is not surprising since Blackmagic Design has a family of products that were well-fit for the do-it-at-home and streaming markets that exploded during the pandemic. They, like other companies, happen to be the right company with the right products for a disruptive change in the way media worked during the pandemic.

"profits increased tenfold to $113 million". So over a two year period, they went from a profit of $11 million on revenue of $288 million to the current profit. What isn't stated is if this is operating profit or net profit. That makes a big difference.

If it is operating profit, it is terrible. That would indicate that in 2019, they were in a weak financial state with an operating profit of only 5%. Even at an operating profit of $113 million against $576 in revenue is not a strong position. Operating profit is usually in the range of 35%-65% of revenue for a healthy company. I doubt BM was ever in such a weak state, so lets assume it is net profit.

If it is net profit, then in 2019, they had a net profit of only 4%, which is terrible. A healthy company operates in the range of about 12% or more. In 2021 they had a net profit of 19.6%. That is an excellent net margin. But again, we have no idea what those numbers really mean without a proper financial statement from BM. Overall, there is nothing egregious in the numbers.

I'm not quite sure what you are complaining about.
 
Personally, I think they should offer their products for free and Grant should live off donations. jk
 
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Paul F said:
I'm not quite sure what you are complaining about.
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Well, there's still the issue of "CEOs reaping enormous salaries while workers are underpaid is exploitation."!!!!
Apparently there is some sort of slavery or indentured servitude going on at the company that I wish jonpais would elaborate on. He must have have insider knowledge about the exploitation because I Googled it can can't find any other references to the employees being held against their will. Is it a cover up? Either way, it sounds like a sad situation that should be addressed by the UN Human Rights Council. Personally, I think anyone who chooses to work at a company that has "recorded obscene profits while exploiting customers" is part of the problem and they get what they deserve. If I was Grant Petty I'd really stick to my employees by giving them a bonus as punishment for being so evil.

The whole thing makes me nostalgic for the good old days when none of the camera manufacturers gave a **** about profits.
 
Doug Jensen said:
Apparently there is some sort of slavery or indentured servitude going on at the company that I wish jonpais would elaborate on.
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LOL! I know people who work for BM and I'm friends with their largest dealer here in Aus and we often work together on feedback to BM. Believe you me they are a happy bunch and are living and working far from serfdom and servitude. :)

Chris Young
 
Doug Jensen said:
Well, there's still the issue of "CEOs reaping enormous salaries while workers are underpaid is exploitation."!!!!
Apparently there is some sort of slavery or indentured servitude going on at the company that I wish jonpais would elaborate on. He must have have insider knowledge about the exploitation because I Googled it can can't find any other references to the employees being held against their will. Is it a cover up? Either way, it sounds like a sad situation that should be addressed by the UN Human Rights Council. Personally, I think anyone who chooses to work at a company that has "recorded obscene profits while exploiting customers" is part of the problem and they get what they deserve. If I was Grant Petty I'd really stick to my employees by giving them a bonus as punishment for being so evil.

The whole thing makes me nostalgic for the good old days when none of the camera manufacturers gave a **** about profits.
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Call me old-fashioned, but I think things were better when management cared about giving a fair shake to their underlings and valued the broader company and social cohesion that this generated. There are also a lot of anti-competitive shenanigans going on these days. For example, there was the pact between Google and Apple that they wouldn't poach each other's engineers, thus depressing salaries in that sector.

I think that employers have a lot more responsibilities to their employees than they do to their customers. I always try to treat my hires with respect and pay them appropriately even if they're hard up and could be had for less.
 
ahalpert said:
Call me old-fashioned, but I think things were better when management cared about giving a fair shake to their underlings and valued the broader company and social cohesion that this generated. There are also a lot of anti-competitive shenanigans going on these days. For example, there was the pact between Google and Apple that they wouldn't poach each other's engineers, thus depressing salaries in that sector.

I think that employers have a lot more responsibilities to their employees than they do to their customers. I always try to treat my hires with respect and pay them appropriately even if they're hard up and could be had for less.
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Oh, come on Abe, you're smarter than this post.
First of all, people always long for the good old days -- that uusally never were. You seriously believe that employees are treated worse than they were a generation ago? If so, you are out of your mind. I'm not even going to waste time refuting it. Just think about the hours people work, the fringe benefits, the sick days, maternity leave for fathers, the tons of holidays, the working conditions, the hours, working from home, etc.. Could things be better in some instances, sure, but overall employees have never had it so good. Do you have any reason to think that the employees, excuse me, I meant to say TEAM MEMBERS at Blackmagic are worse off tan their counterparts at other companies. If so, let''s see your data. If you don' have data then you are just speaking out of your ass.

BTW, every generation thinks kids have gotten worse, businesses are worse, the environment is worse, music is worse, movies are worse, etc. than when they were growing up. That is always the case and it always will be.

Second, what proof do you have to show that Google and Apple conspired not to poach each other engineers? If you don't have proof, you are just rumor mongering. But let's suppose you are exactly right. So what? If they did poach engineers back and forth you'd be complaining about that intsead. Please don't deny it, you know it would be true.

Third, are Google and Apple the only tech companies in the world? Is that the only place engineers with a certain skill-set can find employment? No way. There have to be dozens, if not hundreds of companies that hire these people. How do YOU know that their salaries are unnaturally low due to Apple and Google. There's no way you could prove that. So, your comments are just innuendo and have no merit.

FYI, I also treat my hires with utmost respect and pay them what they are worth, and sometimes even extra to keep them happy and motivatedd. Any business will flounder without good motivated employess. I used own a production company with a half-dozen employees and nobody ever quit unless they were ready to move on to a a higher level job. Nobody ever complained about their pay, benits, or opporunity to grow. Three of my former employees (aka, Team Members) have gone on to very high level management positions in the industry. I don't want to mention names or job titles, but it is impressive what they have achieved. I'm proud of them and what they have attained. Even two of my regular non-employee freelance PA's have made the big time. One landed as a senior editor for PBS documentaries at WGBH and another is a writer for a top-rated CBS drama. Talent rises to the top and I gave them a little help.

Also, when I hire freelancers, they get a check at the end of the day (or week )that they worked. Same with talent, they get a check at the end of the day for the full amount we agreed on. They never have to hound me to get paid. Do you pay same day? Do you pay higher than the going rate?

Has jonpais ever hired strangers in his entire life? I highy doubt it. Armchair quarterback.

Abe, you're smarter than your post.
 
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Apple, Google, others settle antipoaching lawsuit for $415 million
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The settlement happened in 2015:
https://www.cnet.com/tech/tech-indus...r-415-million/

(I would consider poaching to be a good thing since it's more free market and applies appropriate upward salary pressure.)

Beyond just looking at historical changes in the ratio of CEO to burger-flipper pay, as jonpais mentioned, i have developed an idea of the 1960s economy and social contract from documentaries and news articles. I do believe that fundamental changes in how we do business have transpired over the last 50 years.

Some of the sentiments you express remind me of when people say. "Look how good we have it today! Look how cheap TVs are!" But fundamentals like housing, health care, and education have all become far more expensive relative to median earnings. Likewise, you can point at company perks and leave policies (which are probably limited to information workers in growth industries anyway), but it isn't as important to me as salaries and income inequality.
 
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